HB 1551 2003
1	CHAMBER ACTION
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6	The Committee on Business Regulation recommends the following:
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8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to the sale of real property; amending s.
12	689.26, F.S.; revising certain requirements for
13	disclosures that must be provided to prospective
14	purchasers; providing for cancellation of certain
15	contracts within a time certain after entering into such
16	contracts; specifying voidability of certain contracts
17	under certain circumstances; providing an effective date.
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19	Be It Enacted by the Legislature of the State of Florida:
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21	Section 1. Section 689.26, Florida Statutes, is amended to
22	read:
23	689.26 Prospective purchasers subject to association
24	membership requirement; disclosure required; covenants;
25	assessments; contract voidability.--
26	(1)(a)A prospective parcel owner in a community must be
27	presented a disclosure summary before executing the contract for
28	sale. The disclosure summary must be in a form substantially
29	similar to the following form:
30	DISCLOSURE SUMMARY
31	FOR
32	(NAME OF COMMUNITY)
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34	1. AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU
35	(WILL) (WILL NOT)WILLBE OBLIGATED TO BE A MEMBER OF A
36	HOMEOWNERS' ASSOCIATION.
37	2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
38	COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS
39	COMMUNITY.
40	3. YOU (WILL) (WILL NOT)WILLBE OBLIGATED TO PAY
41	ASSESSMENTS TO THE ASSOCIATION. YOU (WILL) (WILL NOT) BE
42	OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE RESPECTIVE
43	MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL, WHICH
44	ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.
45	4. YOUR FAILURE TO PAY SPECIALTHESE ASSESSMENTS OR
46	ASSESSMENTS LEVIED BY A MANDATORY HOMEOWNERS’ ASSOCIATIONCOULD
47	RESULT IN A LIEN ON YOUR PROPERTY.
48	5. THERE (IS) (IS NOT) AN OBLIGATION TO PAY RENT OR LAND
49	USE FEES FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS
50	AN OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. (If
51	such obligation exists, then the amount of the current
52	obligation shall be set forth.)
53	6. THE RESTRICTIVE COVENANTS (CAN) (CANNOT) BE AMENDED
54	WITHOUT THE APPROVAL OF THE ASSOCIATION MEMBERSHIP OR, IF NO
55	MANDATORY ASSOCIATION EXISTS, PARCEL OWNERS.
56	7. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
57	ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU
58	SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING
59	DOCUMENTS BEFORE PURCHASING PROPERTY.
60	8. THESE DOCUMENTS ARE MATTERS OF PUBLIC RECORD AND CAN BE
61	OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE PROPERTY
62	IS LOCATED.
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64	DATE:
65	PURCHASER:
66	PURCHASER:
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69	The disclosure must be supplied by the developer, or by the
70	parcel owner if the sale is by an owner that is not the
71	developer. Any contract or agreement for sale shall refer to and
72	incorporate the disclosure summary and shall include, in
73	prominent language, a statement that the potential buyer should
74	not execute the contract or agreement until they have received
75	and read the disclosure summary required by this section.
76	(b) Each contract entered into for the sale of property
77	governed by covenants subject to the disclosure requirements of
78	this section must contain in conspicuous type a clause that
79	states:
80	IF THE DISCLOSURE SUMMARY REQUIRED BY SECTION 689.26,
81	FLORIDA STATUTES, HAS NOT BEEN PROVIDED TO THE PROSPECTIVE
82	PURCHASER BEFORE EXECUTING THIS CONTRACT FOR SALE, THIS CONTRACT
83	IS VOIDABLE BY BUYER BY DELIVERING TO SELLER OR SELLER’S AGENT
84	WRITTEN NOTICE OF THE BUYER'S INTENTION TO CANCEL WITHIN 3 DAYS
85	AFTER RECEIPT OF THE DISCLOSURE SUMMARY OR PRIOR TO CLOSING,
86	WHICHEVER OCCURS FIRST. ANY PURPORTED WAIVER OF THIS VOIDABILITY
87	RIGHT HAS NO EFFECT. BUYER'S RIGHT TO VOID THIS CONTRACT SHALL
88	TERMINATE AT CLOSING.
89	(c) A contract that does not conform to the requirements
90	of this subsection is voidable by the purchaser pursuant to
91	paragraph (b).
92	(2) This section does not apply to any association
93	regulated under chapter 718, chapter 719, chapter 721, or
94	chapter 723 or to a subdivider registered under chapter 498; and
95	also does not apply if disclosure regarding the association is
96	otherwise made in connection with the requirements of chapter
97	718, chapter 719, chapter 721, or chapter 723.
98	Section 2. This act shall take effect October 1, 2003.